Predictive HR analytics
Meaning & Definition
Predictive HR analytics refers to the analysis of the historical data on the employees and workforce in general, using statistical techniques and predictive models in order to identify the patterns and to assess the potential future outcomes. HR professionals can use this tool to predict employee turnover, workforce needs, absenteeism, performance patterns, and hiring needs, thus making better workforce planning decisions.
Important Aspects of Predictive HR Analytics
- Help HR professionals foresee workforce trends in the future.
- Promotes data-driven workforce planning and decision-making.
- Help identify employees that are potentially at risk of quitting.
- Support to forecast the future hiring and staffing needs.
- Promote proactive talent management and retention.
- Help HR professionals to identify workforce data patterns.
Legal Considerations
Predictive HR analytics should comply with the relevant Indian requirements regarding employee privacy, personal data, confidentiality, and employment practices. There should be a legitimate reason to collect and process the data related to employees and certain safeguards should be applied to the collected data.
If personal data is processed in digital form, then relevant provisions of the Digital Personal Data Protection Act, 2023 should also be taken into account.
